Average Global Home Prices Rose 7.3% in Q1 This Year... Largest Increase in 15 Years

UK Real Estate Agency Knight Frank Surveys Housing Prices in 56 Major Countries

Quarterly Trends in Global Housing Price Growth [Source= Knight Frank]

[Asia Economy Reporter Byunghee Park] Bloomberg News reported on the 3rd (local time), citing statistics from UK real estate agency Knight Frank, that the global house price growth rate in the first quarter of this year reached its highest level since the fourth quarter of 2006.

Knight Frank surveyed housing prices in 56 major countries worldwide for the first quarter of this year and confirmed an average increase of 7.3% compared to the first quarter of last year.

Turkey recorded the highest house price growth rate, rising by a staggering 32% compared to the first quarter of last year. Next, New Zealand's house prices rose by 22.1%, followed by Luxembourg (16.6%), Slovakia (15.5%), and the United States ranked fifth with a 13.2% increase. The U.S. house price growth rate in the first quarter of this year was the highest since the fourth quarter of 2005.

South Korea's house prices rose by 5.8% in the first quarter of this year, ranking 29th among the 56 countries. Japan's house price growth rate was recorded at 5.7%. In Asia, Singapore had the highest house price growth rate at 6.1%.

It is analyzed that the surge in liquidity, caused by large-scale fiscal and monetary easing policies introduced by governments and central banks worldwide in response to COVID-19, is driving up house prices. As concerns about a housing price bubble grow, voices calling for the withdrawal of stimulus measures are increasing in many countries. New Zealand has eliminated tax benefits for real estate investors, and China has also restricted bank loans to the real estate sector.

Knight Frank predicted that the real estate market would somewhat calm down in the second half of the year as governments take measures to prevent overheating in the real estate market.